To say that the Philippines is a big country is an understatement. With 145 cities and 1,489 municipalities spread across more than 7,000 islands, the archipelago is home to over 100 million people packed in a 300,000 sq km land area, making it the eighth most populated country in Asia.In a country with such scale, the ecommerce market is expected to reach a value of US$10 billion by 2025.
However, simply delivering a parcel to its destination is still a massive challenge, says Jojo Añonuevo, chief innovation officer of digital logistics company QuadX.“The Philippines is made up of more than 42,000 barangays (roughly translates to barrio or village, the smallest administrative unit in the Philippines), and there are over two dozen ways residents of Manila City state their city,” he says. Additionally, there are even more inconsistencies with barangay names, he adds.
With successful and timely deliveries being an integral requirement for a logistics company like QuadX, Añonuevo quickly realized that the address standard in the country was sorely lacking.
“In the Philippines, the zip code system is made up of four digits, which only allow for 10,000 combinations. This is not enough to uniquely identify each of the 42,000 barangays,” he explains.